Insurers See Storm Clouds Over Brooklyn
Home insurers are increasingly dropping coverage or raising fees for Brooklynites, claiming the borough’s properties are in a high-risk hurricane zone—no matter how landlocked those properties happen to be. According to an article in New York Magazine, Allstate and other big firms have been nixing policies in neighborhoods like Park Slope and Ditmas Park, saying…
Home insurers are increasingly dropping coverage or raising fees for Brooklynites, claiming the borough’s properties are in a high-risk hurricane zone—no matter how landlocked those properties happen to be. According to an article in New York Magazine, Allstate and other big firms have been nixing policies in neighborhoods like Park Slope and Ditmas Park, saying they’re vulnerable to a Katrina-like catastrophe. “There’s no differentiation [in terms of] distance to water,” notes insurance broker Banach, who says he’s seeing two or three non-renewals every week. Sure, the city’s surrounded by water, but it seems pretty boneheaded to tax owners all over Brooklyn without regard to how close they are to the coast, or whether they’re in flood zones. As the flood maps show, not all areas are created equal when it comes to the threat of flooding. Anyone have trouble getting coverage lately?
The Storm Before the Storm [New York]
I inquired about flood insurance recently. From what I see, the only thing available is a government backed policy with a maximum coverage of $250,000 for property and $100,000 for personal effects. That is not much considering construction costs here. Is it better than nothing? I’m not sure. It’s not going to get you very far in your rebuilding effort.
Homeowner’s insureance will not cover for a flood so those above who believe so should not fool themselves.
It’s likely the crappy outdated inadequate storm sewer system that puts us ALL at risk of flooding in a hurricane, here. So the issue may not be who are in the flood zone or not, but who are in neighborhoods with particularly overloaded storm sewers. I always see big “lakes” at some intersections in Park Slope after every heavy rain. Which one does not see in every neighborhood. Queens has a bad problem with that.
About alerting NY State, I did hear people are supposed to do that, if their policy is canceled. It’s worth posting the info here if it can be found. There’s a cap on the percentage of policies the companies can cancel, and the state is watching that.
This is actually worth writing a letter to Chuck Schumer. Many areas in Brooklyn are elevated (e.g. much of Clinton Hill) and are not in a flood zone even if there was a category 5 hurricane in NYC. If insurance companies are citing flood risk as a reason for dropping coverage in areas that are clearly not flood zones, then drawing some public attention to this would be a worthwhile exercise.
lp
ive had policies cancelled on three different properties, neither in flood zones…in fact they are located in the highest elevations in brooklyn..
Allstate dropped me and I was in the Heights. stating hurricane risk. not a happy camper to say the least
I believe Allstate’s specific issue may be how saturated they are in this area leaving them with a a high exposure to a payout should anything catastrophic occur. Thus, not accepting new applications and dropping policies for whatever reason ultimately forces other companies to pick up the policies and would spread the risk around. Further, I believe they are dropping those who only have a single homeowners policy as opposed to those who also insure thier vehicles plus any further types of insurance with them. So if you have Allstate for your home and whatever else for you car, you may want to re-think that if you want to keep the Allstate coverage. Obviously Allstate is not leaving the area entirely, but does appear to be selectively cherry picking what is considers value customers. It sucks. I don’t know whether or not it is ethical. The reasons are bogus, because everything above 4th Ave should be high enough above sea level to avoid a storm surge. I know 6th ave is over 100 feet above sea level and not in the flood zone maps. I have Allstate for home and two cars and got renewed. I plan on keeping it for sure because I think they are one of the better carriers.
ugh that article further underscores what a racket homeowner’s insurance is. i’m surprised so many people in Brooklyn are getting dropped; the insurers could just lowball ’em if they get wiped out!
i have liberty mutual and my rate went up to $1500 this year (from about $1200). i don’t even know if i got the full limit i’d have enough to rebuild, this insurance thing is totally academic. i’m paying this money because they told me i have to, it would be nice to be able to have some peace of mind to go with it.
still, i’m taking AllState’s logic to my own job, i’m telling my boss we can make profits by letting me stay home, we’ll still bill the clients, i just won’t do my work.
We got insurance through Chubb, but we pay a lot for it. $5,000 for a 2-story one-family house with finished English basement. We’re not in the flood zone, so that’s not why it’s pricey. It’s an annoying amount to pay, but I just know there was no way I was going to risk going with State Farm, after seeing what they’re doing to people in the Gulf States after Katrina. I’d rather pay $5,000 a year and actually get coverage if something happens, than pay half that for nothing. “You get what you pay for” does apply to home insurance too.
11:37 is right:
Another good reason to move to Stuy Heights.
“Great buy, $750K Italianate brownstone, dry basement, insurable, soon to be close to beaches and marinas”.